COST

How Much Will the Project Cost?

The cost of this planned renovation is currently $16 Million. Here is a breakdown of the tax implications and operating expenses over time. Currently, there is no state aid available for school construction projects.

Borrow$16,000,000​

30 Year Bond at 3.39%(Expected to Rise)

30 Year Bond at 4.25% ​(Highest Anticipated)

Annual Principal

$533,333

$533,333

Second Year Interest

$483,032

$618,811

Total Debt Service

$1,016,365

$1,152,144

FY18 Debt Service Bond

($154,010)

($154,010)

Increase in Debt Service

$862,355

$998,134

Budget Impact ​​(if FY18 Budget = $12,107,122)

7.12%

8.24%

Tax Impact​(if costs are incurred in FY18)

11.56 cents8.35%

13.38 cents​9.67%

Increase in Cost Per Pupil

$1,111.24

$1,286.21

Compared with Current Cost Per Pupil = $13,293(State Average Cost Per Pupil = $14,652)

$14,404.24

$14,579.21

What will this mean for my taxes?

Taxes will increase. However, it is important to remember that Vermont schools are funded by education taxes paid into a common statewide system by all taxpayers in Vermont. Those with fixed incomes and combined earning below $141,000 are eligible for a property tax adjustment. The net effect is that this group of taxpayers are assessed at lower rate, which is known as the income sensitivity provisions. The number of households in Fairfax that are income sensitive is 65%. Which means that much of the costs of the project will be shared with other towns in Vermont. Just as the citizens of Fairfax support projects occurring in other schools throughout Vermont.​

The tax impact, if we were to incur this debt in FY18, is estimated to be between 11.56-13.38 cents. We cannot project what the impact would be in FY20 because the legislation governing education finance may change.

With a 30 year bond at the highest anticipated interest rate, the cost per pupil calculated on the FY18 budget plus the estimated additional debt expenses would still remain below the FY17 state average per pupil.

The potential impact of the additional debt services on the FY18 budget would be between a 7.12-8.24% increase. ​